Power projects to be key issue in Nepal-India talks

The Nepal-India Joint Ministerial Level Commission on Water Resources will mainly dwell on feasibility study of Saptakoshi high dam project, Pancheshwor multi-purpose hydel project and bilateral power trade agreement.

According to a Nepali team member, since the meeting in New Delhi is basically of introductory nature, likelihood of signing any MoU between the two countries is remote. The members said Nepali side would review the progress being made on upgradation of transmission lines on the Indian side of the border to facilitate supply of extra power to Nepal.

During the sixth Energy Secretary-level talks held in Delhi on November 24-25, Nepal had asked India to supply 100 MW power within two-three months and additional 100 MW within a year for which both countries had agreed to upgrade transmission lines on their respective sides of the border.

The existing infrastructure does not sustain supply of additional power between the two countries. Upgradation of transmission lines is going on. Nepal and India agreed in 1996 to conduct a feasibly study on proposed 3,000 MW multi purpose Saptakoshi high dam project and Sunkoshi-Kamala diversion project for which a joint office was set up in Biratnagar.

Authorities, however, failed to expedite feasibility work in the past because of protests by Maoist affiliated associations and some local residents.

Nepal’s Acting Ambassador to India Khaganath Adhikari, who is part of the 20-member Nepali team, said the Terms of Reference for Pancheshwor Development Authority would also figure in the meeting. Nepal has already approved the ToR but not India. “India does not have any reservation on the ToR. It is just a procedural matter and the moment the formality is completed, India would approve it,” Adhikari said.

ASP Sinha, who is Senior Joint Commissioner at Indian Ministry of Water Resources, said talks will focus on Pancheshwor and Saptakoshi high dam project. “As far as Saptakoshi is concerned, we have also been talking about its detailed project report,” he said and added that the process to approve the ToR of the Pancheshwor project was in final stage.

Both the sides will also discuss problems of inundation in the border areas. “Inundation issue is not going to be a major issue because we have already addressed it,” he added.

Nepal has already forwarded a draft of power trade agreement to India. But India is yet to respond to it. Early finalisation of the agreement is expected to speed up work for proposed 400 KV Dhalkebar-Muzffarpur double circuit transmission lines.

Haziq Beg, Senior Vice President, Infrastructure Leasing and Financial Services Limited, said signing of power trade agreement between Nepal and India would be a positive signal for power traders of the two countries. He said Nepal government needed to extend hydel power project licensing period from 30 to 40 years because large hydel projects take at least 10 years to complete.

Nepal’s Energy Minister Posta Bahadur Bogati and Indian Water resources Minister Pawan Kumar Bansal will lead their respective teams.